Let x represent the dollar amount spent on supermarket impulse buying in a 10-minute (unplanned) shopping interval. Based on a certain article, the mean of the x distribution is about $29 and the estimated standard deviation is about $9. (a) Consider a random sample of n = 130 customers, each of whom has 10 minutes of unplanned shopping time in a supermarket. From the central limit theorem, what can you say about the probability distribution of x, the average amount spent by these customers due to impulse buying? What are the mean and standard deviation of the x distribution? The sampling distribution of x is not normal.The sampling distribution of x is approximately normal with mean μx = 29 and standard error σx = $0.07.    The sampling distribution of x is approximately normal with mean μx = 29 and standard error σx = $9.The sampling distribution of x is approximately normal with mean μx = 29 and standard error σx = $0.79. Is it necessary to make any assumption about the x distribution? Explain your answer. It is necessary to assume that x has an approximately normal distribution.It is not necessary to make any assumption about the x distribution because μ is large.    It is necessary to assume that x has a large distribution.It is not necessary to make any assumption about the x distribution because n is large. (b) What is the probability that x is between $27 and $31? (Round your answer to four decimal places.)

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
icon
Related questions
Question

Let x represent the dollar amount spent on supermarket impulse buying in a 10-minute (unplanned) shopping interval. Based on a certain article, the mean of the x distribution is about $29 and the estimated standard deviation is about $9.

(a) Consider a random sample of n = 130 customers, each of whom has 10 minutes of unplanned shopping time in a supermarket. From the central limit theorem, what can you say about the probability distribution of x, the average amount spent by these customers due to impulse buying? What are the mean and standard deviation of the x distribution?
The sampling distribution of x is not normal.The sampling distribution of x is approximately normal with mean μx = 29 and standard error σx = $0.07.    The sampling distribution of x is approximately normal with mean μx = 29 and standard error σx = $9.The sampling distribution of x is approximately normal with mean μx = 29 and standard error σx = $0.79.

Is it necessary to make any assumption about the x distribution? Explain your answer.
It is necessary to assume that x has an approximately normal distribution.It is not necessary to make any assumption about the x distribution because μ is large.    It is necessary to assume that x has a large distribution.It is not necessary to make any assumption about the x distribution because n is large.

(b) What is the probability that x is between $27 and $31? (Round your answer to four decimal places.)

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 8 steps with 5 images

Blurred answer
Knowledge Booster
Point Estimation, Limit Theorems, Approximations, and Bounds
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, probability and related others by exploring similar questions and additional content below.
Recommended textbooks for you
A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
Probability
ISBN:
9780134753119
Author:
Sheldon Ross
Publisher:
PEARSON
A First Course in Probability
A First Course in Probability
Probability
ISBN:
9780321794772
Author:
Sheldon Ross
Publisher:
PEARSON